Butter imports from Mexico will grow 4.2%

Butter imports from Mexico would register a 4.2% year-on-year growth in fiscal year 2021, to 50,000 tons, the United States Department of Agriculture (USDA) projected.

For fiscal year 2020, the USDA estimates that butter imports into Mexico totaled 48,000 tons.

Regarding the consumption of butter in the Mexican market, his calculation is that in 2020 it was 275,000 tons.

Household consumption should grow, albeit at a very slow pace, as butter outpaces the competition from plant-based substitutes (margarine) that are perceived as healthier and linked to a fitter lifestyle.

However, industrial processors (for example, the bakery and confectionery sectors) will consume the majority of Mexico’s butter production and imports.

In March and April 2020, there were dramatic drops in butter imports in Mexico, but June and July imports finally made up for that drop.

As e-commerce and comfort food sales increased during the pandemic shutdown period, industrial processors have required a steady supply of butter imports to supplement domestic butter production.

Butter imports

However, in general, the demand gap left by the closure of the HRI sector (hotels, restaurants and institutions) will keep the import figures lower in 2020 compared to 2019.

In 2019, Mexico obtained 77% of its butter imports from New Zealand, followed by the United States with 16 percent.

As of July 2020, New Zealand continues to be Mexico’s main supplier of butter, with the United States in second place and the Netherlands increasing their market share.

Regarding butter imports from Mexico (not butterfat, as mentioned above), the United States leads with a 41% market share, followed by New Zealand with a 38% market share and France with a market share of 41%. market share of 14 percent.

External sales

The USDA also estimates a butter export from Mexico at 10,000 tons for 2021, unchanged from 2020, as adverse economic conditions have slowed domestic export activities for this product.

The United States is the main export destination for Mexican butter with a 97% market share, followed by Cuba and Italy.

Finally, for 2020, the USDA estimates Mexico’s butter production at 234,000 tons; while for 2021 its forecast is 235,000 tons.

This dairy product is also affected by the adverse economic conditions in Mexico, as well as by pandemic sanitary measures.

The HRI sector has been the most affected by this situation, with the bakery and confectionery sector maintaining demand and usage slightly positive.